National Inflation Rate

July 23, 2016

The wide ranging rise of the prices of goods and economic assistance in a period of time is what we call inflation rate. When the prices of goods and other products increase, it tends to affect the rate of those who consumes that certain good, for the buying rate decreases. It is often a negative outcome on some economic businesses for the less buyer they will have, the lesser they will receive in return from their investments. Inflation rate affects an economy as a whole like a domino effect. For example, when prices on goods and basic necessities rise; workers will tend to demand a rise for their wages in order to sustain their needs. In this matter, the business itself will increase the rate of its products in order to carry on with their workers or else, they will have bigger problems.

National inflation rate is the term that refers to the inflation rate in a certain country. It changes as time goes by and can be measured by consumer price index or the time series regarding the price increase of consumer goods. It varies depending on the economy of a certain country or nation.

The United States of America is the world’s biggest national economy for its Gross Domestic Product or the value of all the goods that it produces reached up to $14.3 trillion in the year 2009. Nowadays, the United States of America is suffering from regression. This means, the country is simply suffering from an economic crisis. This kind of economic crisis is also a result of the national inflation rate. There are more goods that is being produced but with higher prices thus result to the lesser number of consumers who purchase it. This in return, gives economies like the USA a difficulty in handling the crisis matter.

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